Hong Kong stablecoin stocks slump after central bank vows cryptocurrency crackdown

SHANGHAI - Hong Kong-listed stocks with businesses related to stablecoins tumbled on Monday, after China's central bank vowed to crack down on virtual currencies and flagged stablecoin concerns.

Yunfeng Financial Group 0376.HK slumped nearly 10%, Bright Smart Securities and Commodities Group 1428.HK dropped roughly 7% and OSL Group 0863.HK lost more than 4%.

The People's Bank of China (PBOC) reaffirmed its tough stance on virtual currencies on Saturday, warning of a resurgence in speculation and vowing to crack down on illegal activities involving stablecoins.

The PBOC specifically highlighted concerns about stablecoins, saying they fail to meet requirements for customer identification and anti-money-laundering controls.

-Reuters